This paper examines the importance of fiscal autonomy in the analysis of decentralization. Using new data published by the OECD (2001 and 2002), it reproduces several indicators and proposes new measures of decentralization that take into consideration su-bnational governments' autonomy over their revenues. Two models are reproduced: Davoodi and Zou (1998) on decentralization and economic growth, and Oates (1985), on decentralization and public sector size. Some evidence suggests that fiscal autonomy positively affects economic growth. Also, it seems to affect the size of the state, but evidence on this relation is limited. Despite some statistical weaknesses, there are sufficient indications to argue that sub-national governments' fiscal autonomy should be a major concern when measuring decentralization.
Detalhes
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Autor
Meloche, Jean-Philippe; Vaillancourt, Francois;
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Data do documento
2004/03/01
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TIpo de documento
Documento de trabalho sobre pesquisa de políticas
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No. do relatório
WPS3254
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Nº do volume
1
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Total Volume(s)
1
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País
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Região
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Data de divulgação
2010/07/01
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Nome do documento
Decentralization or fiscal autonomy ? What does really matter ? effects on growth and public sector size in European transition countries
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Palavras-chave
Decentralization; Fiscal administration; Autonomy; Transition economies; Growth patterns; Public sector management; Performance indicators; Subnational finances; Subnational government; Economic models; Economic growth;
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